India’s stock market has received a major boost as 13 Indian companies were added to FTSE’s prestigious All-World Index on August 23. This marks the largest number of additions from any single country, highlighting India’s growing global economic influence, as per Economic Times report.
The Indian companies joining the index span various sectors, including banking, defense, shipbuilding, and financial services. Notable additions include Bank of Maharashtra, Bharat Dynamics, Central Bank of India, and Motilal Oswal Financial Services, the report added.
Following India, Taiwan saw six stocks added to the index, while Korea and Hong Kong each had two additions. Australia rounded out the list with one stock inclusion, as per the report.
The FTSE All-World Index, which aims to represent 90 per cent of the investable market capitalization across developed and emerging markets, is widely used as a benchmark for investment products such as funds and exchange-traded funds, as per the report.
In addition to the All-World Index changes, FTSE also announced updates to its Large Cap and Mid Cap indices. The Large Cap Index welcomed 14 new stocks, including prominent names like Dixon Technologies, Oil India, and PB Fintech. Conversely, five stocks, including Adani Wilmar and Paytm (One 97 Communications), were removed from this index, the report added.
The Mid Cap index saw a more extensive reshuffle, with 17 stocks added and 13 removed. Many of the stocks excluded from the Large Cap index found a new home in the Mid Cap index, reflecting shifts in market capitalization and liquidity, as per the report.
What is FTSE Index?
The London Stock Exchange (LSE) features a prominent market indicator known as the FTSE index. This benchmark serves as a barometer for the performance of major companies listed on the LSE. Among the various FTSE indices, the FTSE 100 stands out as the most recognized. Often referred to by its nickname “Footsie,” this index monitors the top 100 firms based on market capitalization.
Another significant member of the FTSE family is the FTSE 250 index. Launched in the early 1990s, specifically in 1992, this index complements its more famous counterpart by tracking a broader range of companies. Together, these indices provide investors and analysts with valuable insights into the health and trends of the UK stock market, offering a comprehensive view of both the largest corporations and a wider selection of significant players in the British economy.
